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SAN JOSE, CA-Red Sea Group has acquired a 70,000-sf data center here from Seagate Properties. The building is leased through October 2008 by Digex, a wholly owned subsidiary of MCI.

Red Sea Group EVP Mitch Kralis tells GlobeSt.com that the negotiated purchase price was in the $14-million range. The asking price for the asset was $15.5 million, he says.

“The issue here is the short-term lease,” he says. “However, the data center market is tightening up very nicely.”

Red Sea Group is an Israeli family trust. Its portfolio exceeds $1 billion of hotel, office, industrial, retail and residential properties in Eastern and Western Europe, South Africa, Asia and North America. It has been investing in US real estate since 1992, focused primarily on California.

The Digex facility is the company’s second data center acquisition in the Silicon Valley. The first, an AT&T Wireless occupied facility, already has been retraded, Kralis says.

Looking forward, Kralis says Red Sea group wants to establish a “sound and strong” presence in Northern California. Over the next three years, the company’s goal is to accumulate between $300 million and $400 million of real estate in the region.

“We’re going to be a player there for a long time,” he says.

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